Key reason for the growth of gelatin and its derivatives market globally

Gelatin and gelatin derivatives are a type of collagen obtained from skin, hides and bones of animals. The key sources of gelatin and its derivatives are bovine hide and porcine skin. Gelatin and its derivatives find its application across several industries including food and beverages, pharmaceutical, nutraceutical, cosmeceutical, photography and ballstics. In food industry, gelatin is used in confectionaries including marshmallows and gummi-candies whereas in meat processing it is used as a binding and glazing agent. In the pharmaceutical industry, gelatin is used in making capsule shells, granulation, suppositories, plasma substitute for medicines, health supplements and syrups. In nutraceuticals, gelatin is used in nutritional bars and protein drinks. Cosmeceutical industry uses gelatin in shampoos, conditioners, lipsticks and fingernail formulas.

Rising living standards is key reason for the growth of gelatin and its derivatives’ market globally. The growing end-user markets including food and beverage, pharmaceuticals and cosmeceuticals are increasing demand for gelatin and its derivatives. Food and beverages are the largest end-user segments in the gelatin and gelatin derivatives market. Growing demand for functional food is escalating the gelatin and gelatin derivatives market. Ageing population in some countries such as Japan is another factor driving the gelatin and gelatin derivatives market due to increase in demand for gelatin coated drugs. The manufacturing of gelatin and its derivatives have to meet certain regulatory norms in each global region.

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However, certain factors are restraining the gelatin and its dervatives’ market including consumer concerns related to the safety and social aspects of dead animal body products. The outbreak of BSE (Bovine Spongiform Encephalopathy) poses threat for the companies on account of reducing profit margins due to rising raw material prices. Europe has been the most BSE-affected region in the recent past. The increasing trend of gelatin-free encapsulation wherein the substitutes are replacing gelatin and its derivatives, are emerging as a serious concern for this market. For instance, soluble fibers are used widely in confectionaries in place of gelatin and gelatin derivatives.

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Europe dominates the global gelatin and gelatin derivatives market, followed by North America. Some of the key companies in the gelatin and gelatin derivatives market include Capsugel, Catalent Pharma Solutions, Gelita AG, Gelnex and Nitta Gelatin.

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